Many Australians attempt to claim donations at year end, however, not all are tax deductible.  The ATO is warning people not to double-dip in their deductions this year or run the risk of being audited.

A non-deductible donation is generally treated as a private expense for tax purposes for individuals.

A tax deduction is only available for donations of $2 or more that are:

  • Made to a deductible gift recipient (DGR)
  • Made without receipt of material benefit or advantage (eg buying a raffle ticket or items at a charity auction)
  • Evidenced by a record of donation

No tax deduction is available for donations made to social media or crowdfunding platforms unless the platform is a registered DGR. This means that donations to personal fundraisers, such as raising money for an individual’s medical bills, are not tax deductible.

What records need to be kept?

Taxpayers must retain records for all tax-deductible donations made. DGRs will generally provide a receipt for donations made, however, there is no requirement for a DGR to provide a receipt. Donations made through a workplace giving program can be evidenced by an employee’s income statement or payment summary, or by written records from the employer.

If you have any questions, reach out to us at [email protected].